Gold Silver Reports — Nifty Forms `Large Bear Candle’ — The Nifty50 witnessed strong selling pressure in the second half of the trading session on Monday , but managed to close above the psychological support level at 8500. In the process, the index formed a `Large Bear Candle’ or `Long Black Day’ on the daily candlestick charts.
The candlestick pattern formed on Monday closely resembled a `Bearish Belt Hold’. The only difference is that the pattern had a slight upper shadow.In a `Bearish Belt Hold’ pattern, the candle has a long body with no upper shadow and a small lower shadow.
The selling pressure intensified as technical stop losses got triggered when the Nifty50 moved below the 8,540 level. Now, a break below the psychological level of 8,500 can trigger further correction in the market.Traders should avoid creating long positions as of now.
The Nifty50 made a `Large Bear Candle’ on the daily candlestick charts, which shows that the bears kept the selling pressure throughout the session. The index broke below its crucial support level at 8,540 and traded below its 50-day EMA placed at the 8,653 level. The Nifty50 opened at 8,612 and rose marginally to an intraday high of 8615.
— Neal Bhai Report